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NEWS ROUNDUP

30 Acme Markets Units for Sale?of American Stores Co. here declined comment last week on reports that the company may be negotiating to sell as many as 30 Acme Markets outside the Philadelphia area.American's Acme Markets division, based in Malvern, Pa., operates approximately 250 stores in Pennsylvania, New Jersey, Delaware and Maryland.According to a local newspaper report in Wilkes-Barre, Pa.,

30 Acme Markets Units for Sale?

of American Stores Co. here declined comment last week on reports that the company may be negotiating to sell as many as 30 Acme Markets outside the Philadelphia area.

American's Acme Markets division, based in Malvern, Pa., operates approximately 250 stores in Pennsylvania, New Jersey, Delaware and Maryland.

According to a local newspaper report in Wilkes-Barre, Pa., Penn Traffic Co., Syracuse, N.Y., was the prospective buyer of several Acme stores. Penn Traffic last year acquired Insalaco Markets, a 12-store operator based in nearby Pittston, Pa.

Officials of Penn Traffic declined to comment on the reports.

Officials of the local union that represents the Acme employees told SN last week they had not been notified by Acme management of any expected ownership changes.

Lucky Workers Ink Union Pact

BUENA PARK, Calif. -- Approximately 1,700 drivers and warehouse personnel employed at three warehouses operated by the southern California division of Lucky Stores here have approved a new four-year agreement with the Teamsters union.

The new contract, covering workers at facilities in Fullerton, Irvine and here, includes a raise of $1.70 per hour over the term of the contract plus a guarantee of job security.

The agreement ended a union strike threat, which stemmed from Lucky's decision to transfer liquor and tobacco distribution from its main warehouse here to a new facility in Fontana, Calif.

That facility was opened recently by Lucky's parent, American Stores Co., Salt Lake City, to accommodate both Lucky and Sav-On Drugs. The facility is covered under a separate Teamster jurisdiction and operates on a lower pay scale than the Buena Park warehouse.

The union had already concluded separate negotiations with local divisions of Albertson's, Certified Grocers of California, Food 4 Less Supermarkets, Hughes Family Markets, Ralphs Grocery Co., Stater Bros. Markets and Vons Cos.

Grand Union Ratings Lowered

WAYNE, N.J. -- The debt ratings of Grand Union Co. here have been downgraded by Moody's Investor Service, New York, because of the retailer's "increasingly leveraged balance sheet, thin cash-flow interest coverage and growing competition in some key markets."

The ratings on two senior subordinated note issues were lowered to Caa from B3, and a Caa rating was assigned to Grand Union Capital's senior zero coupon notes and senior subordinated zero coupon notes.

In its report on the downgrade, Moody's said Grand Union has a solid franchise in the New York City metropolitan area, which represents 55% of its sales, and in upstate New York. Competitive openings and a weak economy in the mid-Hudson Valley and Albany metropolitan areas of New York, however, led to declining sales in Grand Union's stores there, Moody's said. It is too early to assess the impact of the chain's increased promotional and pricing activity in the area, according to the report.

Grand Union operates 254 supermarkets in seven Northeastern states. Its operating margin of 7.3% of sales is one of the strongest in the industry, Moody's noted.

Prince Charles to Visit Vons

ARCADIA, Calif. -- Prince Charles will visit a Vons store in the Los Angeles area in early November as part of the UK/LA 1994 Festival.

UK/LA, a two-month celebration of British arts, began Sept. 7.

In connection with the prince's visit, Pavilions, the combination-store format operated by Vons, will highlight British foods and beverages in special advertising, in-store displays and food demonstrations.

Officials of Vons, based here, declined to specify the date or the store the prince will visit because of security concerns. Observers said Prince Charles is likely to choose an inner-city Vons because of his interest in visiting areas affected by the 1992 Los Angeles riots.

Vons was selected for the royal visit because it is the official information center for the UK/ LA 1994 Festival.